The SEC is discussing a "gradual" regulatory path for tokenized securities and plans to introduce innovative exemption mechanisms.

According to Odaily Planet Daily, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins and Commissioner Hester Peirce stated that regulators are considering an "innovation exemption" for on-chain securities to gradually promote the adoption of tokenized securities in the U.S. capital markets. Atkins, speaking at the ETHDenver event, pointed out that this exemption mechanism would allow limited trading of some tokenized securities on new platforms, while accumulating practical experience for the establishment of a long-term regulatory framework. Peirce reiterated that tokenized securities are essentially still securities and should be cautiously pursued within the existing legal framework. Over the past year, traditional financial institutions, including Nasdaq and DTCC, as well as several crypto companies, have explored tokenized stock businesses. If the SEC approves the relevant path, crypto platforms may be able to offer traditional stock trading based on blockchain technology, competing with traditional brokerages. Currently, global demand for tokenized stock trading continues to rise. Kraken reported that its xStocks product has accumulated $25 billion in trading volume; Robinhood's RWA blockchain project also saw over 4 million transactions in its first week. The SEC stated that it will take a "gradual" approach to balance innovation and investor protection.